H1FY17 Group Highlights Revenue of $152.5m Adjusted EBITDA 1 of - - PowerPoint PPT Presentation

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H1FY17 Group Highlights Revenue of $152.5m Adjusted EBITDA 1 of - - PowerPoint PPT Presentation

H1FY17 Group Highlights Revenue of $152.5m Adjusted EBITDA 1 of $8.1m Operating cash flow of $7.4m Interim dividend of 2.0c per share Net cash position at 31 December 2016 Operations reflect the diversity of the Group


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H1FY17 Group Highlights

  • Revenue of $152.5m
  • Adjusted EBITDA1 of $8.1m
  • Operating cash flow of $7.4m
  • Interim dividend of 2.0c per share
  • Net cash position at 31 December 2016
  • Operations reflect the diversity of the Group
  • Sustaining capital projects in the Iron Ore sector for BHP

Billiton, Rio Tinto, Sino Iron and at Roy Hill

  • Minor capital works at a number of the ADF bases and facilities
  • First substantial renewables project - 10MW solar farm
  • Road and bridge projects by Cut & Fill for Vic Roads
  • Improvement in the Group’s core sectors of natural

resources, infrastructure and renewable energy

  • FY18 work in hand and visible revenue stands at

~$175m

Note: 1 – Excluding various one off and restructuring costs

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Decmil Group of Companies

National construction & engineering footprint

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44% 27% 16% 9% 4% WA QLD Vic NSW Other

H1FY17 Highlights

H1FY17 revenue by sector

$153m

H1FY17 revenue by geography FY18 order book (by sector) Key H1FY17 projects

~$175m $153m

40% 44% 8% 8% Resources Infrastructure Accomodation Other

Client Project Value

BHP Billiton Port Hedland logistics hub ~$30m ADF Various enabling infrastructure projects across Australia ~$30m in H1FY17 QGC Wellhead installation, brownfield maintenance, minor capital works ~$25m in H1FY17 Vic Roads Sands road interchange; Monash Freeway bridge strengthening; Sneydes Road interchange ~$20m in H1FY17 Roy Hill Samsung C&T Various construction works at Roy Hill project by Decmil; engineering consulting by Scope Ongoing 54% 41% 5% Resources Infrastructure Other

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Adjusted H1FY17 EBITDA

$m EBITDA Reported Result (0.2) Adjustments

  • Hastings project loss

1

6.5

  • Restructuring costs

2

0.6

  • Discontinued operations

3

1.2 Adjusted Result 8.1

Notes: 1. Project loss on Hastings fuel project in Victoria. Loss has arisen due to industrial relations, weather and productivity issues over the life of the project. Wet commissioning achieved in February 2017 2. Redundancy and termination costs 3. Discontinuance of unprofitable division of the SAS business

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Recent Half on Half Trend

Revenue Operating cash flow Overhead Homeground occupancy

57% 13% 11% 31% 0% 10% 20% 30% 40% 50% 60% H2FY15 H1FY16 H2FY16 H1FY17 % 129 153 180

  • 20

40 60 80 100 120 140 160 180 200 H2FY16 H1FY17 H2FY17 $m 22.7 15.8 15.8 15.6 14.0

  • 5

10 15 20 25 H2FY15 H1FY16 H2FY16 H1FY17 H2FY17 $m

Note: H2FY17 values are estimates

3 (23) 7 (25) (20) (15) (10) (5)

  • 5

10 H1FY16 H2FY16 H1FY17 $m

Improving revenue and cost trend

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  • Net assets of $239.6m
  • Tangible net assets of $153.3m
  • Gross cash of $17.9m (overall net cash)
  • Low gearing
  • Significant bonding capacity

Group Balance Sheet

Low gearing ratio with tangible asset base

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Iron Ore Sector

Improving Iron Ore sector presenting sustaining capital

  • pportunities – Decmil well positioned

Current Decmil Iron Ore projects

Client Project Value

BHP Billiton Port Hedland logistics hub ~$30m Rio Tinto Silvergrass and Namuldi non process infrastructure ~$40m Roy Hill Panel engineering contract through Scope Australia Ongoing Sino Iron Non process infrastructure including work at Cape Preston airport ~$13m Samsung C&T Various works at Roy Hill project Ongoing

39.6 80.8

30.0 40.0 50.0 60.0 70.0 80.0 90.0 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17

62% Fe Spot Price (US$/mt)

Source: IMF

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  • Improvement in the Group’s core sectors of

natural resources and infrastructure - new

  • pportunities in renewable energy
  • Sustaining capital opportunities in Iron Ore and

CSG sectors

  • Positive trend in Federal and State Government

infrastructure spending represents opportunity for many parts of the business

  • FY18 work in hand and visible revenue currently

stands at ~$175m

  • Efficient overhead structure – has reduced over

30% since FY15

Outlook

Market conditions improving in core sectors

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This presentation contains a summary of information of Decmil Group Limited and is dated February 2017. The information in this presentation does not purport to be complete or comprehensive and does not purport to summarise all information that an investor should consider when making an investment decision. It should be read in conjunction with Decmil’s other periodic and continuous disclosure announcements and you should conduct your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision. This presentation is not a disclosure document and should not be considered as an offer or invitation to subscribe for, or purchase any securities in Decmil or as an inducement to make an offer or invitation with respect to those securities. The information contained in this presentation is not intended to be relied upon as advice to investors or potential investors and has been prepared without taking into account the recipient’s investment

  • bjectives, financial circumstances or particular needs. Those individual objectives, circumstances and needs should be considered, with professional

advice, when deciding whether an investment is appropriate. This presentation contains forward looking statements. Such forward looking statements are not guarantees of future performance and are subject to known and unknown risk factors associated with the Company and its operations. While the Company considers the assumptions on which these statements are based to be reasonable, whether circumstances actually occur in accordance with these statements may be affected by a variety of

  • factors. These include, but are not limited to, levels of actual demand, currency fluctuations, loss of market, industry competition, environmental

risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. These could cause actual trends or results to differ from the forward looking statements in this presentation. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place undue reliance on forward looking statements and subject to any continuing obligation under applicable law, the Company disclaims any

  • bligation or undertaking to disseminate any updates or revisions to any forward looking statements in this presentation to reflect any change in

expectations in relation to any forward looking statements or any change in events, conditions or circumstances on which any statement is

  • based. Nothing in these materials shall under any circumstances create an implication that there has been no change in the affairs of the Company

since the date of this presentation. To the maximum extent permitted by applicable laws, the Company makes no representation and can give no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility and assumes no liability for, the accuracy, suitability or completeness of or any errors in or omission, from any information, statement or opinion contained in this presentation. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. References to “Decmil”, “the Company”, “the Group” or “the Decmil Group” may be references to Decmil Group Ltd or its subsidiaries.

Disclaimer

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